IRVINE, Calif.—Mazda Motor Corporation today
announced that all of the U.S.- and Canada-bound Mazda vehicles from
the car-carrying vessel, Cougar Ace, which nearly capsized off the Aleutian
Islands in late July, would be scrapped.

"After thorough testing by engineers from our American and Japanese
R&D centers, we decided the most appropriate course of action – with
our customers foremost in mind – was not to sell any of the 4,703 Mazdas
aboard the ship," said Jim O'Sullivan, President and CEO of Mazda North
American Operations, based in Irvine, Calif.

The Cougar Ace sat listing at more than 60-degrees for nearly a month
after an incident at sea, before it could be towed to the Port of Portland,
Ore., for repairs and to have its cargo off-loaded.

O'Sullivan added that although some of the Mazdas aboard the Cougar
Ace showed little or no visible damage from being tied-down at severe
angles for an extended period, the company reconsidered its initial decision
to sell any of the vehicles as used.

"We always put the customer first," O'Sullivan continued. "This drove
our decision to scrap every one of the Mazdas involved in this incident.
None will be sold as used cars."

Headquartered in Irvine, Calif., Mazda North American Operations oversees
the sales, marketing, parts and customer service support of Mazda vehicles
in the United States, Canada and Mexico through nearly 900 dealers. Operations
in Canada are managed by Mazda Canada, Inc., located in Ontario, Canada,
and in Mexico by Mazda Motor de Mexico in Mexico City.